Bitcoin falls $30B after surge on Iran ceasefire report

Bitcoin lost about $30 billion in market value after briefly rising to $79,490 on April 27 following reports that Iran offered a ceasefire proposal to reopen the Strait of Hormuz. The price fell to $77,500 early Monday, erasing gains made earlier in the session.

The cryptocurrency climbed from just under $78,000 to $79,490 within about three hours and remained above $79,000 until the early hours of April 27, when it dropped to $77,500. The pullback reduced bitcoin’s market capitalization to about $1.55 trillion. Session volatility exceeded 2.63%.

Exchange risk-monitoring firm Coinglass reported roughly $56.8 million in short liquidations over 12 hours, compared with about $38 million in long liquidations over the same period.

Sources say Iran submitted a proposal to the U.S. through Pakistani mediators that would extend a ceasefire and reopen the Strait of Hormuz in exchange for a pause in the U.S. naval blockade. The proposal focused on ending the blockade and extending the ceasefire and did not address Iran’s nuclear program.

Market participants linked the intraday price jump to the reports about a ceasefire and the strait. Michaël van de Poppe, founder of MN Fund, described a decisive move above $84,000 and $87,000 as evidence that “we’re done with the bear market.” He noted that, historically, markets often reach new highs within 12 months after a sharp crash and cited the fourth quarter of 2022 during the FTX collapse as a recent exception; he also acknowledged a similar catastrophic event could happen again.

As of 3:30 a.m. EDT on April 27, bitcoin had gained about 15% since the start of the month, narrowing its year-to-date loss to roughly 11% from a peak loss of more than 20% at the end of March. Traders and investors are watching whether the coin can sustain higher levels after the rapid intraday swings.

The Strait of Hormuz is a major transit route for global oil shipments. U.S. military strikes and a broader pressure campaign preceded the naval blockade, which has been cited as a factor in negotiations. The session’s brief rally and subsequent decline occurred alongside the reporting on the strait and the blockade.